A survey was completed recently that showed that close to 50 percent of caregivers spend more than $5,000 annually on expenses related to caring for their aging loved ones. As many of those caregivers are caring for their own growing families as well as their aging loved ones this is putting a strain on their family finances.
Costs that are being borne by caregivers include:
- Paying for medication
- Paying for medical bills and co-pays
- Paying for in-home care
Caregivers also spend up to 30 hours per week caring for their aging relatives beyond their financial resources. You can see that time and put a strain on both wallet and body.
Some of the mistakes that caregivers make when they fall into the role is that they don’t properly budget for time or money. In some cases when family members are put into the role of caregiver it comes at a time of crisis and this could lead to overspending or perhaps not knowing what, if, or how much a loved ones insurance policy may pay for in-home care or other medications and physicians’ visits. If a caregiver doesn’t have access to, or is not in charge of, the loved ones’ assets, he may pay for it all out of pocket and hope for reimbursement later – this is not ideal.
The best way to make sure a family is prepared for a health or care crisis is to begin the conversation today about powers of attorney, finances, life and health insurance and even final wishes. Having a family meeting sooner, rather than later, can provide information that all parties need to be aware of in order to make the role into caregiving as seamless as possible.
Here are some financial tips families can take to minimize the financial burdens or stresses that come from caregiving:
- Ask for help. If you or your aging loved ones have close ties in the community reach out to them for assistance. This may be ideal if only to make certain your family members have interaction with the “outside world.” You, as a caregiver, have to remember you simply cannot do it all –especially if you’re working full time and caring for your own family. You need to look at hiring caregivers for your parents, finding someone who can take them to and from doctor’s visits or grocery shopping treks and even cleaning the house and preparing meals. Freeing up time for the caregiver is as important as the money being spent on hiring for these roles. Also, if you worry about your loved ones being home alone and having no contact it may make sense to invest in a home medical alert system. These devices offer a way for your family members to have immediate access to medical attention should the need arise.
- Join a caregivers support group. Many of the feelings you experience – anger, frustration, exhaustion and more are shared by others in your role. It’s best to make connections with others who are in the same situation because they may be a great source for inspiration and tricks to make caregiving easier.
- Understand the type of insurance your parents have, what is covered and what is excluded before you make any investments in in-home assistance or spend money on prescription drugs. Also, check to see if they’re eligible for any Veterans or Social Security, Medicaid or Medicare benefits.
- Prior to the need arising, it’s best to investigate long term health care and living options. Making a decision on where to place mom or dad in the middle of a crisis is not healthy for anyone. When you’re researching locations for them to reside, you will also want to contact an elder law attorney so you can understand the options for payment of a stay.
- Gather all necessary paperwork – bank accounts, wills, power of attorney, insurance information, debts owed, information on utility payments, medications taken, physician information, etc. this way if your parents can no longer speak for themselves, the family knows where all of the “important papers” are kept.
The further ahead a family can plan the easier the transition to a caregiver/caregiving role will be. It is also a role that needs to be shared by all family members so that one sibling isn’t shouldering the entire load.